Koll Center Building Project
The building we are trying to make a permanent home in Pleasanton is located at 7139 Koll Center Parkway in the Koll Center Office Park. It has great visibility from Valley Road and is directly across from the Alameda County Fairgrounds. It is a single story building that is roughly 19,000 square feet. The building is currently used for office space and industrial use and will need to be re-zoned for church use.
The building will require extensive remodeling to convert it into congregational space. The goal is to build a auditorium that can accommodate 500 to 600 seats and the associated meeting spaces for Sunday Kids and Middle School programs.
The purchase price of the building is approximately $5.3M. The renovation cost will be anywhere from $2.25M to $3.25M depending on the the need for seismic upgrades and raising the roof for the auditorium space. The actual renovation costs will defined as we complete the conceptual design and architectural and engineering design phases.
Financing the building will be accomplished through a combination of your donations and and debt financing.
Blue Oaks church has a stewardship policy that limits the amount of money that may be spent on the operating costs of real-estate at 25% of the annual budget. This limitation is in place so that we not jeopardize our financial future based on too much debt. The 2018-2019 budget for Blue Oaks is $1.9M which means we could invest up to $475K annually or $40K monthly in mortgage payments or rent. Currently, Blue Oaks spends $186K annually monthly to Pleasanton Unified and to our office landlord. The monthly payment for real estate is a function of the size and length of the loan and the interest rate.
Lenders require that we maintain a 75% loan to value ratio based on the appraised value of the building. Appraised value is what others would be expected to pay for the building if they were to purchase it from us. It does not necessarily equate to what we purchase the building for and what we then invest in its remodeling.
Based on these parameters, Blue Oaks could ultimately finance anywhere from $4M to $7M depending on assessed building value and interest rate.